Erste Group Bank Ag · VIE:EBS
Erste Group Bank — Q3 2010 Earnings Presentation
82 slides from Erste Group Bank's earnings presentation, Oct 29, 2010
Slide 1: Erste Group – 1-9 2010 results presentation
Erste Group – 1-9 2010 results presentation 29 October 2010, London Strong operating income and strict cost control Andreas Treichl, Chief Executive Officer Manfred Wimmer, Chief Financial Officer Bernhard Spalt, Chief Risk Officer
Slide 2: Disclaimer – Cautionary note regarding forward-looking statements
Disclaimer – Cautionary note regarding forward-looking statements THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTN
Slide 3: 1-9 2010 executive summary – Strong operating performance continues
1-9 2010 executive summary – Strong operating performance continues Continued strong operating performance - cost/income ratio improved to 48.7% Operating income rose by 4.3% to EUR 5,900.1m on the back of strong NII, resilient margins and growing fee income Operating result improved by 9.1% to EUR
Slide 4: Presentation topics
Presentation topics * Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix *) The following tables and texts may contain rounding differences. 29 October 2010 Conference call & analyst presentation London 4 1-9 2010 R
Slide 5: Erste Group's business – Retail market leadership in the eastern part of the EU
Erste Group’s business – Retail market leadership in the eastern part of the EU Focus on the eastern part of the European Union Erste Group is the leading retail bank Erste Group is one of the leading corporate banks Erste Group is the leading bond originator Erste Group is the leading fund manageme
Slide 6: Macroeconomic trends – What has changed in CEE in Q3 2010?
Macroeconomic trends – What has changed in CEE in Q3 2010? Economic growth continued to be mainly driven by exports in Q3 2010 Industrial output has remained strong across the region Improved household consumption in selected countries More balanced growth forecast for next year with domestic demand
Slide 7: Macroeconomic trends – Focus: Economic growth outlook in CEE
Macroeconomic trends – Focus: Economic growth outlook in CEE Significant improvement in industrial output Real GDP growth in CEE thanks to rising exports 4.5% 4.3% 4.1% 4.0% 8% 3.0% 2.6% Main driver behind recovery 2.2% 2.0% 2.0% 1.9% 1.5% 1.3% 1.2% 0.9% 4% Unit labour costs declined in CEE as produ
Slide 8: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix 29 October 2010 Conference call & analyst presentation London 8 1-9 2010 Results
Slide 9: 1-9 2010 financial highlights – Resilient margins and strong operating profitability
1-9 2010 financial highlights – Resilient margins and strong operating profitability Net profit grew by 2.3% to EUR 736.8 million Cash earnings per share * Lower Cash-EPS and Cash-ROE due to substantially enlarged capital base 6.0 Issuance of participation capital in H1 09 (EUR 1.76bn) 4.78 5.0 Issu
Slide 10: 1-9 2010 financial highlights – Operating result continues to perform well
1-9 2010 financial highlights * – Operating result continues to perform well in EUR million 1-9 10 1-9 09 Change Q3 10 Q2 10 Q3 09 Retail & SME 2,377.9 2,154.8 10.3% 808.0 831.4 808.1 Austria 630.0 585.0 7.7% 210.2 219.7 208.6 EB Oesterreich 290.5 243.6 19.3% 96.8 98.7 90.4 Savings Banks 339.5 341.4
Slide 11: Q3 2010 financial highlights – Operating result of more than EUR 1 billion
Q3 2010 financial highlights – Operating result of more than EUR 1 billion in Q3 2010 Operating income per quarter Operating expenses per quarter 2,500 1,200 1,936 1,954 2,010 927 953 945 973 1,921 1,922 1,000 920 2,000 82 99 144 94 97 95 in EUR million 160 141 105 in EUR million 93 460 472 494 476
Slide 12: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix 29 October 2010 Conference call & analyst presentation London 12 1-9 2010 Results
Slide 13: Erste Group's customer deposits – Deposit growth continues to outpace loan growth
Erste Group’s customer deposits – Deposit growth continues to outpace loan growth Customer deposits grew by 2.9% ytd (up 1.8% yoy) Customer deposit trends by main segments Mainly based on solid growth in Austria and strong inflows in the Czech Republic 125 113.3 112.0 115.6 116.6 115.3 Retail & SME
Slide 14: Erste Group's loan book – Loan demand across the segments remained subdued
Erste Group’s loan book – Loan demand across the segments remained subdued Customer loans increased by 1.8% ytd; up 1.2% yoy Growth in Retail & SME loans in Austria and CEE ytd and yoy Customer loans by main segments * was driven mainly by appreciation of CHF and CEE currencies 150 vs euro 130.0 129
Slide 15: Erste Group's asset quality – Group trends: declining NPL formation, coverage rises
Erste Group’s asset quality – Group trends: declining NPL formation, coverage rises New NPL formation declined in line with target Erste Group: NPL ratio vs NPL coverage risk costs Excellent performance in Austria both at the savings 30% 65% banks and Erste Bank Oesterreich resulted in 25% 60.9% red
Slide 16: Erste Group's asset quality – Segments: improvements in Austria, Slovakia and GCIB
Erste Group’s asset quality – Segments: improvements in Austria, Slovakia and GCIB Retail & SME/Austria: improving asset quality NPL ratios in key segments accompanied by decreasing risk costs Decrease in NPL ratio and substandard category, 20% while low risk asset class increased 17.4% NPL coverage
Slide 17: Erste Group's asset quality – Segments round-up cont'd: consolidation of risk costs
Erste Group’s asset quality – Segments round-up cont'd: consolidation of risk costs Slovakia: new lending in low risk class Risk costs in key segments improves portfolio quality Due to tighter lending criteria and continued retail 700 607 loan growth 600 557 553 60 531 504 NPL ratio in retail remain
Slide 18: Erste Group's funding profile – Retail deposits remain a key pillar in the funding mix
Erste Group’s funding profile – Retail deposits remain a key pillar in the funding mix Customer deposits remain the main source of funding Providing a solid funding base in all local currencies Evolution of Erste Group's funding mix Reflected in loan/deposit ratio improvement to 114.0% Short-term fu
Slide 19: Erste Group's capital position – Further strengthening of the capital base
Erste Group’s capital position – Further strengthening of the capital base Total equity (IFRS) increased by EUR 0.9 Total capital reconciliation billion (+5.5%) year-to-date based on: 18 17.0 Retained earnings and … 16.1 0.9 0.3 0.1 -0.5 16 … improved AfS reserve … in EUR billion 3.6 3.4 … and posit
Slide 20: Erste Group's capital position – Further strengthening of capital ratios
Erste Group’s capital position – Further strengthening of capital ratios Tier 1 ratio Core tier 1 ratio (total risk)1 (total risk)2 9.7% 9.2% 8.7% 8.3% 6.2% 5.2% 2008 2009 Q3 10 2008 2009 Q3 10 1) Tier 1 ratio (total risk) = tier 1 capital incl. hybrid and after regulatory deductions divided by tota
Slide 21: Conclusion – Outlook
Conclusion – Outlook Economies will continue to recover in 2011 Austria, Czech Republic and Slovakia to lead the way based on rising domestic demand, following export-led growth in 2010 Strong year-to-date operating performance to be sustained in Q4 2010 Positive outlook for 2011 operating performan
Slide 22: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix 29 October 2010 Conference call & analyst presentation London 22 1-9 2010 Results
Slide 23: Group income statement (IFRS) – Strong qoq improvement of Group net profit
Group income statement (IFRS) – Strong qoq improvement of Group net profit in EUR million 1-9 10 1-9 09 Change Q3 10 Q2 10 Q3 09 Net interest income 4,075.5 3,840.9 6.1% 1,390.7 1,361.2 1,335.6 Risk provisions for loans and advances (1,588.4) (1,449.2) 9.6% (504.2) (553.0) (557.1) Net fee and commis
Slide 24: Group balance sheet (IFRS) – Loan-to-deposit ratio stable at 114.0%
Group balance sheet (IFRS) – Loan-to-deposit ratio stable at 114.0% in EUR million Sep 10 Dec 09 Change Cash and balances with central banks 5,030 5,996 (16.1%) Loans and advances to credit institutions 14,464 13,140 10.1% Loans and advances to customers 131,514 129,134 1.8% Risk provisions for loan
Slide 25: Group balance sheet (IFRS) – Stronger balance sheet driven by deposits and own issues
Group balance sheet (IFRS) – Stronger balance sheet driven by deposits and own issues in EUR million Sep 10 Dec 09 Change Deposits by banks 22,714 26,295 (13.6%) Customer deposits 115,329 112,042 2.9% Debt securities in issue 32,013 29,612 8.1% Trading liabilities 3,564 3,157 12.9% Provisions 1,568
Slide 26: Core segments
Core segments – Retail & SME GCIB Group Markets Corporate Center Total group in EUR million 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 Net interest income 3,459.8 3,372.2 445.5 414.7 86.6 158.8 83.6 (104.8) 4,075.5 3,840.9 Risk provisions (1,390.2) (1,225.7) (198.1) (223.5
Slide 27: Core segment – Austria
Core segment – Austria Erste Bank Oesterreich drives improvement in Austria Savings Banks EB Oesterreich Austria in EUR million 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 Net interest income 712.5 717.3 481.8 484.9 1,194.3 1,202.2 Risk provisions (209.5) (240.7) (124.2) (113.4) (333.8) (354.1) Net fe
Slide 28: Core segment Central and Eastern Europe (1) – Diverging trends in operating performance
Core segment Central and Eastern Europe (1) – Diverging trends in operating performance … Czech Republic Romania Slovakia Hungary in EUR million 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 Net interest income 810.8 821.9 621.8 590.4 317.4 286.7 287.7 263.0 Risk provisions (284.1) (203.1)
Slide 29: Core segment Central and Eastern Europe (2) – … and risk cost levels across the region
Core segment Central and Eastern Europe (2) – … and risk cost levels across the region Croatia Serbia Ukraine CEE in EUR million 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 1-9 10 1-9 09 Net interest income 182.8 165.5 20.0 22.0 25.0 20.5 2,265.6 2,170.0 Risk provisions (78.9) (45.4) (6.6) (6.1) (23.5
Slide 30: Segment Retail & SME – Solid operating performance despite slight qoq decline
Segment Retail & SME – Solid operating performance despite slight qoq decline Retail & SME segment is the key profit contributor at Segment operating performance Erste Group 2,000 1,622 1,637 1,641 1,638 1,558 Net profit declined by 6.9% yoy, down 40.9% qoq 1,500 Supported by strong operating perfor
Slide 31: Segment Retail & SME – Loan book analysis
Segment Retail & SME – Loan book analysis Segment Retail & SME - Segment Retail & SME - Customer loans by Basel II customer segment Customer loans by currency 120 108.9 108.6 110.0 111.5 112.5 100% 2.2% 2.2% 2.3% 2.3% 2.2% 5.6 5.6 5.7 5.9 5.9 14.3% 14.2% 14.4% 15.0% 14.6% 80% 90 in EUR billion 42.5
Slide 32: Segment GCIB – Sustained operating performance and lower risk costs
Segment GCIB – Sustained operating performance and lower risk costs Operating result up 8.7% yoy (8.4% qoq) to EUR Segment operating performance 436.9m Revenues continued to improve (+8.4% yoy) supported by NII 250 growth (+7.4% yoy), driven by re-pricing of loans in 2009 and 202 189 197 175 187 sel
Slide 33: Segment GCIB – Loan book analysis
Segment GCIB – Loan book analysis Segment GCIB - Segment GCIB - Customer loans by currency Customer loans by Basel II customer segment 30 100% 3.2% 1.3% 3.6% 1.3% 4.6% 1.3% 4.1% 1.2% 4.0% 1.2% 6.4% 5.5% 5.7% 5.3% 5.9% 12.5% 12.5% 13.4% 14.1% 11.8% 20.3 80% 19.5 19.6 19.0 in EUR billion 20 1.1 18.4 1
Slide 34: Segment Group Markets – Q3 2010 performance supported by better trading result
Segment Group Markets – Q3 2010 performance supported by better trading result Operating result declined by 42.0% yoy but improved Segment operating performance by 27.8% qoq to EUR 259.0m Revenues contracted by 27.5% yoy on above average 2009 200 172 performance, but were up by 21.7% qoq driven by a
Slide 35: Segment Corporate Center – Performance continues to improve
Segment Corporate Center – Performance continues to improve What is in the Corporate Center? Segment operating performance Business areas which cannot be allocated to relevant business lines, one-offs and Group ALM 40 34 18 20 10 Line-item analysis in EUR million NII substantially improved by EUR 18
Slide 36: Retail & SME: Austria/EB Oesterreich – Continued strong operating performance, NPLs decline
Retail & SME: Austria/EB Oesterreich – Continued strong operating performance, NPLs decline Operating result improved by 19.3% yoy (-1.9% qoq) Segment operating performance NII declined by 0.7% yoy to EUR 481.8m (+1.3% qoq). Customer deposits increased by 6.9% yoy but continued to 300 248 251 249 su
Slide 37: Retail & SME: Austria/EB Oesterreich – Loan book analysis
Retail & SME: Austria/EB Oesterreich – Loan book analysis Segment EB Oesterreich - Segment EB Oesterreich - Customer loans by Basel II customer segment Customer loans by currency 30 26.0 26.1 26.4 26.8 26.9 100% 1.7% 1.9% 1.9% 2.1% 2.0% 1.5 15.2% 15.1% 15.3% 15.8% 15.5% 1.4 1.4 1.4 1.4 80% in EUR bi
Slide 38: Retail & SME: Austria/Savings banks – Positive contribution to net profit on lower risk costs
Retail & SME: Austria/Savings banks – Positive contribution to net profit on lower risk costs Operating result unchanged yoy (-0.6%); down 6.3% Segment operating performance qoq NII slightly declined by 0.7% yoy (-4.7% qoq) on declining 400 353 356 339 356 347 market interest rates 300 Fee income in
Slide 39: Retail & SME: Austria/Savings banks – Loan book analysis
Retail & SME: Austria/Savings banks – Loan book analysis Segment Savings Banks - Segment Savings banks - Customer loans by Basel II customer segment Customer loans by currency 40 35.3 35.9 36.1 36.7 36.9 100% 3.2% 3.0% 3.3% 3.3% 3.4% 1.6 1.6 1.7 1.7 19.3% 18.9% 19.3% 19.8% 19.5% 1.5 80% 30 in EUR bi
Slide 40: Retail & SME: Czech Republic – Continued solid operating performance
Retail & SME: Czech Republic – Continued solid operating performance Operating result improved by 6.3% (+1.6% FX- adjusted)1 yoy to EUR 674.8m Segment operating performance NII sligtly declined by 1.4% yoy (-5.7%); continued pressure on 500 411 393 424 liability margins through lower market interest
Slide 41: Retail & SME: Czech Republic – Loan book analysis
Retail & SME: Czech Republic – Segment Czech Republic: loan book analysis Segment Czech Republic - Segment Czech Republic - Customer loans by Basel II customer segment Customer loans by currency 20 17.7 17.3 17.9 100% 0.1% 3.4% 0.1% 3.3% 0.1% 3.4% 0.1% 3.5% 0.2% 3.5% 16.7 17.1 0.6 0.7 0.7 0.7 0.7 16
Slide 42: Retail & SME: Romania – Macro environment continues to weigh on performance
Retail & SME: Romania – Macro environment continues to weight on performance Operating result increased by 7.8% yoy (+ 6.6% FX- Segment operating performance adjusted)1, but declined by 26.2% qoq NII up 5.3% (4.2%) supported by better pricing in the corporate 350 306 and municipality businesses, but
Slide 43: Retail & SME: Romania – Loan book analysis
Retail & SME: Romania – Segment Romania: loan book analysis Segment Romania - Segment Romania - Customer loans by currency Customer loans by Basel II customer segment 15 100% 2.0% 2.1% 2.2% 2.0% 1.8% 11.2 11.2 11.4 11.2 11.2 12 80% in EUR billion 1.2 1.2 1.3 1.2 1.4 55.9% 56.6% 56.4% 59.2% 59.5% 9 6
Slide 44: Retail & SME: Slovakia – Sustainable strong recovery of net profit
Retail & SME: Slovakia – Sustainable strong recovery of net profit Operating result increased by 26.8% yoy (-4.5% qoq) NII continued to improve: up 10.7% yoy on the back of growing Segment operating performance retail loans (mainly mortgages) and selective repricing of deposits; NII up 1.8% qoq agai
Slide 45: Retail & SME: Slovakia – Loan book analysis
Retail & SME: Slovakia – Segment Slovakia: loan book analysis Segment Slovakia - Segment Slovakia - Customer loans by Basel II customer segment Customer loans by currency 8 100% 0.8% 0.7% 0.4% 0.4% 0.4% 5.7 5.7 5.5 5.6 5.7 80% 6 in EUR billion 0.1 0.1 0.1 0.1 0.1 1.9 1.8 1.5 1.5 1.5 60% 4 0.4 0.3 0.
Slide 46: Retail & SME: Hungary – Austerity measure negatively impact financial results
Retail & SME: Hungary – Austerity measure negatively impact financial results Operating result advanced by 20.9% (+23.4% FX- Segment operating performance adjusted)1 yoy; up 7.7% qoq Strongly supported by NII, which rose by 9.4% yoy (+11.6%), 150 131 137 122 119 126 due to ability to re-price retail
Slide 47: Retail & SME: Hungary – Loan book analysis
Retail & SME: Hungary – Segment Hungary: loan book analysis Segment Hungary - Segment Hungary - Customer loans by currency Customer loans by Basel II customer segment 10 100% 0.5% 0.6% 0.4% 0.5% 0.2% 22.0% 22.6% 21.7% 23.2% 22.0% 7.2 7.3 7.4 7.6 7.6 8 80% 0.4 0.4 in EUR billion 0.3 0.3 0.4 6 2.4 2.4
Slide 48: Retail & SME: Croatia – Solid operating performance continues
Retail & SME: Croatia – Solid operating performance continues Operating result improved by 10.9% (+9.4% FX- Segment operating performance adjusted)1 to EUR 141.5m yoy, up 8.9% qoq NII continued to improve by 10.4% (+8.9%) on to better margins 100 81 80 83 87 in both the retail and the corporate busi
Slide 49: Retail & SME: Croatia – Loan book analysis
Retail & SME: Croatia – Segment Croatia: loan book analysis Segment Croatia - Segment Croatia - Customer loans by currency Customer loans by Basel II customer segment 6 5.4 5.3 100% 0.2% 0.2% 0.2% 0.1% 0.1% 15.3% 15.4% 15.6% 15.6% 15.3% 4.8 4.7 4.7 0.4 0.3 0.5 0.3 0.3 80% in EUR billion 4 2.4 2.3 1.
Slide 50: Retail & SME: Serbia – Asset quality improves but still challenging environment
Retail & SME: Serbia Asset quality improves but still challenging environment Operating result declined by 25.0% yoy (-18.6% FX- Segment operating performance adjusted)1 to EUR 6.8m; more than doubled qoq NII declined by 8.9% (-1.2%) due to significant drop in local 15 market interest rates, effecti
Slide 51: Retail & SME: Serbia – Loan book analysis
Retail & SME: Serbia – Segment Serbia: loan book analysis Segment Serbia - Segment Serbia - Customer loans by currency Customer loans by Basel II customer segment 600 100% 1.2% 0.9% 3.2% 0.9% 3.3% 1.3% 1.1% 518.2 517.0 3.6% 4.7% 4.3% 459.0 9.2 8.9 2.2 417.0 80% 391.5 in EUR million 2.3 400 5.7 63.9%
Slide 52: Retail & SME: Ukraine – Operating performance and risk continues to improve
Retail & SME: Ukraine – Operating performance and risk continues to improve Operating result continued to improve: EUR 4.3m Segment operating performance (1-9 09: EUR -1.6m) NII increased by 22.1% (16.5% FX adjusted1) on higher interest 20 income from high-yield government bonds, qoq decline due to
Slide 53: Retail & SME: Ukraine – Loan book analysis
Retail & SME: Ukraine – Segment Ukraine: loan book analysis Segment Ukraine - Segment Ukraine - Customer loans by currency Customer loans by Basel II customer segment 800 100% 2.0% 1.9% 1.6% 1.4% 1.5% 544.8 560.5 80% 600 in EUR million 504.4 509.0 0.0 0.0 492.3 0.0 0.0 69.1 72.9 63.3 64.5 0.0 60% 64
Slide 54: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 29 October 201
Slide 55: Key topics: ABS/CDO portfolio – Stable exposure, slight improvement in prices
Key topics: ABS/CDO portfolio Stable exposure, slight improvement in prices Face value decreased by EUR 62m to in Q3 2010 Redemptions and amortisations of EUR 39 million Divestments of EUR 40 million ABS/CDO portfolio by book (Sep 2010)* Due to currency effects, portfolio decreased by EUR 162m (USD
Slide 56: Key topics: ABS/CDO portfolio – Detailed portfolio analysis
Key topics: ABS/CDO portfolio Detailed portfolio analysis ABS/CDO portfolio by ratings Sep 2010)* ABS/CDO portfolio by region Sep 2010)* % of total % of total in EUR m Face Value Market Value +/-% in EUR m Face Value Market Value +/-% (market value) (market value) AAA 236 214 (9.0%) 12.0% USA 885 72
Slide 57: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 29 October 201
Slide 58: Asset quality analysis – Key definitions
Asset quality analysis – Key definitions Key asset quality indicators are based Risk category Agency ratings on on-balance sheet customer loans Low risk AAA to BB / Aaa to Ba Reported NPL and NPL coverage ratios Management attention B exclude collateral Substandard CCC to C / Broad NPL definition Ca
Slide 59: Erste Group's asset quality – Loan book overview
Erste Group’s asset quality – Loan book overview Customer loans by Basel II customer segments Customer loans by industries 150 130.0 129.1 130.3 131.0 131.5 3.9% 5.5% 6.7 7.0 7.1 7.2 3.2% 120 6.7 3.1% 5.0% 39.0% in EUR billion 61.6 61.0 60.7 60.3 60.1 4.8% 90 60 13.8 13.4 13.5 13.7 13.6 5.4% 30 47.8
Slide 60: Asset quality analysis – Loan book by segments
Asset quality analysis – Loan book by segments Low risk Mgmt attention Substandard Non-performing Total loan book Risk provisions NPL coverage NPL ratio Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Retail & SME 80,103 77,484 18,464 1
Slide 61: Asset quality analysis – Loan book by regions
Asset quality analysis – Loan book by regions (country of origination) Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Share of total Share of total Core market 85,461 85,141 21,044 20,937 5,918 5
Slide 62: Asset quality analysis – Loan book by industry sectors
Asset quality analysis – Loan book by industry sectors Low risk Mgmt attention Substandard Non-performing Total loan book in EUR million Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Sep 10 Dec 09 Share of total Share of total Agriculture and forestry 1,015 1,040 592 596 133 142 186 155 1,
Slide 63: Asset quality analysis – Financial assets
Asset quality analysis – Financial assets Financial assets by country of origination Financial assets by currency (30 Sep 2010: EUR 35.5 bn) (30 Sep 2010: EUR 35.5 bn) 4.7% 3.6% 18.1% 25.7% 4.7% 4.2% 7.5% 2.9% 5.9% 16.7% 15.7% 62.8% 5.1% 9.5% 6.6% 6.3% AT CZ SK US DE HU RO IT GB Other EUR CZK USD HU
Slide 64: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 29 October 201
Slide 65: Key local entity data (IFRS, consolidated) – Ceska sporitelna
Key local entity data (IFRS, consolidated) – Ceska sporitelna Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 41.5% 42.0% Return on equity 17.4% 20.7% 80% 72.9% 72.5% 8% 68.1% 65.7% 68.7% Sep 10 Dec 09 Change Erste Group stake 97.99% Solvency ratio 14.0% 12.3% 60%
Slide 66: Key local entity data (IFRS, consolidated) – BCR
Key local entity data (IFRS, consolidated) – BCR Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 35.1% 36.4% 145.6% 145.5% 145.1% 143.2% 143.6% Return on equity 9.5% 14.5% 150% 15% Sep 10 Dec 09 Change Erste Group stake 69.17% 10.0% 10.6% 12% Solvency ratio 12.5% 1
Slide 67: Key local entity data (IFRS, consolidated) – Slovenska sporitelna
Key local entity data (IFRS, consolidated) – Slovenska sporitelna Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 42.6% 51.2% Return on equity 15.3% 6.8% 100% 8% Sep 10 Dec 09 Change 77.5% 76.5% 78.0% 76.0% Erste Group stake 100.0% 80% 71.2% Solvency ratio 12.4% 10
Slide 68: Key local entity data (IFRS, consolidated) – Erste Bank Hungary
Key local entity data (IFRS, consolidated) – Erste Bank Hungary Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 39.5% 44.5% Return on equity 2.0% 17.2% 270% 12% Sep 10 Dec 09 Change 194.1% 192.3% 203.4% 10% Erste Group stake 99.94% 182.1% Solvency ratio 12.6% 13.0%
Slide 69: Key local entity data (IFRS, consolidated) – Erste Bank Croatia
Key local entity data (IFRS, consolidated) – Erste Bank Croatia Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 38.0% 40.7% Return on equity 11.2% 13.3% 140% 121.6% 12% 113.4% 117.0% 120.3% Sep 10 Dec 09 Change 111.9% Erste Group stake 65.03% 120% 8.5% 9% Solvency
Slide 70: Key local entity data (IFRS, consolidated) – Erste Bank Serbia
Key local entity data (IFRS, consolidated) – Erste Bank Serbia Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 75.0% 69.5% Return on equity n.a. 3.7% 120% 20% Sep 10 Dec 09 Change 95.0% 99.8% 95.8% 96.1% 93.6% Erste Group stake 80.49% 100% Solvency ratio 18.0% 25.1
Slide 71: Key local entity data (IFRS, consolidated) – Erste Bank Ukraine
Key local entity data (IFRS, consolidated) – Erste Bank Ukraine Key figures and ratios 1-9 10 1-9 09 Rate and margin environment Cost/income ratio 67.1% 69.5% Return on equity na na 700% 634.2% 19.0% 20% Sep 10 Dec 09 Change 600% 15.2% 523.6% Erste Group stake 100.0% 477.2% 500% 604.0% 405.1% 15% So
Slide 72: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 29 October 201
Slide 73: Erste Group historic financials – Quarterly income statement (IFRS)
Erste Group historic financials – Quarterly income statement (IFRS) in EUR million Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Net interest income 1,339.8 1,226.0 1,279.3 1,335.6 1,380.0 1,323.6 1,361.2 1,390.7 Net fee and commission income 482.1 444.6 443.6 425.1 459.5 471.5 493.5 475.7 Net tra
Slide 74: Erste Group historic financials – Quarterly balance sheet (IFRS)
Erste Group historic financials – Quarterly balance sheet (IFRS) v mil. EUR Dez 07 Mär 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Cash and balances with central banks 7,615 7,783 6,854 7,692 7,556 5,897 6,897 5,458 5,996 5,965 6,540 5,030 Loans and advances to credit in
Slide 75: Quarterly segment reporting – Overview of main segments
Quarterly segment reporting – Overview of main segments in EUR million Retail & SME Group Corporate & Investment Banking Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Net interest income 1,174.0 1,160.2 1,129.1 1,161.3 1,169.4 141.9 155.8 147.6 145.4 152.5 Risk provisions (484.2) (563.
Slide 76: Quarterly segment reporting – Austria sub-segments
Quarterly segment reporting – Austria sub-segments in EUR million Erste Bank Oesterreich Savings Banks Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Net interest income 159.9 152.5 158.9 160.4 162.4 246.2 239.8 230.5 246.8 235.2 Risk provisions (39.2) (38.0) (44.8) (42.9) (36.5) (62.6)
Slide 77: Quarterly segment reporting – Central and Eastern Europe sub-segments (1)
Quarterly segment reporting – Central and Eastern Europe sub-segments (1) in EUR million Czech Republic Romania Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Net interest income 292.0 261.0 264.5 271.6 274.7 199.5 246.5 213.1 202.0 206.6 Risk provisions (82.3) (84.9) (97.2) (90.9) (96.
Slide 78: Quarterly segment reporting – Central and Eastern Europe sub-segments (2)
Quarterly segment reporting – Central and Eastern Europe sub-segments (2) in EUR million Croatia Serbia Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Net interest income 57.6 58.0 56.1 61.5 65.2 6.1 6.2 6.1 6.4 7.6 Risk provisions (19.6) (29.1) (25.3) (23.2) (30.3) (2.1) (0.9) (2.2) (2
Slide 79: Presentation topics
Presentation topics Business snapshot and macro trends 1-9 2010 financial highlights 1-9 2010 key topics 1-9 2010 financials and segment reporting Appendix ABS & CDO portfolio (details) Asset quality (details) CEE local statements Quarterly results Key ratios and shareholder structure 29 October 201
Slide 80: Group statistical data – Tier 1 and solvency ratios within target ranges
Group statistical data* – Tier 1 and solvency ratios within target ranges in EUR million 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sep 10 Tier 1 Capital pursuant to Austrian Banking Act 1,611 1,753 2,125 2,337 3,800 3,912 4,377 5,112 6,185 6,674 7,448 11,450 11,784 Total own funds
Slide 81: Shareholder structure – Total number of shares: 378,176,721
Shareholder structure – Total number of shares: 378,176,721 By investor By region Criteria CaixaCorp Other 10.1% 2.3% Continental Capital Research 25.3% Europe 5.1% 21.6% Austria 47.5% Employees 3.5% UK & Ireland 9.0% Savings banks 5.1% Institutional Retail investors investors 6.3% North America 44.
Slide 82: Investor relations contacts
Investor relations contacts Erste Group Bank AG, Graben 21, 1010 Vienna Fax +43 (0)5 0100-13112 E-mail: investor.relations@erstegroup.com Internet: www.erstegroup.com Reuters: ERST.VI Bloomberg: EBS AV Datastream: O:ERS ISIN: AT0000652011 Investor relations Gabriele Werzer Tel: +43 (0)5 0100-11286 e